Readers' forum : That’s a wrap

A client’s husband had an individual savings account (ISA) portfolio of about £500 000 when he died.

I understand that between death and the date of the additional permitted subscription (APS) being made the portfolio will be subject to tax in the normal way. After the APS the portfolio regains its tax-exempt wrapper.

However is there a need to consider the gains and losses of the underlying investments between the date of death and the APS and are these therefore subject to capital gains tax?

Taxation readers’ thoughts on this matter would be gratefully appreciated.

Query 18 940 – Portfolio.

Reply by Bramble

An additional permitted subscription (APS) is allowed from 6 April 2015 and is available to the surviving spouse (for spouse include civil partner throughout) if the deceased individual savings account (ISA) holder died on or after 3 December 2014...